FFL Transfers & Sales Tax

[blincoln]

I am purchase a new gun this weekend, most likely from a dealer out of state. They are not charging sales tax.

My question is this - In Colorado, should FFLs be collecting the sales tax on gun purchases? My initial research says no, but if someone has actual expierence or knows for a fact, I would apprecaite their input.

Thanks!

 

[Pahoo]

It's your money that is "working"

My initial research says no, but if someone has actual expierence or knows for a fact, I would appreciaite their input.

This question has come up before and I have done a number of trasactions as you described. If it's you money working, then no. If it's the dealer's money working, than yes. The only thing you should really have to pay, is the transfer fee. Now, don't let your FFl dealer on your end, tell you different. That is exactly what a dealer pulled on a buddy of mine and sure enough, my buddy paid it. ...
You know, you may want to make sure your dealer understands that he has not sold you anything. ....

Be Safe !!!

 

[twins]

In Colorado, should FFLs be collecting the sales tax on gun purchases?

No sales tax collected if you pre-pay the selling dealer. Just pay transfer fee to receiving dealer.

 

[dogtown tom]

Pahoo

Quote:
My initial research says no, but if someone has actual expierence or knows for a fact, I would appreciaite their input.

This question has come up before and I have done a number of trasactions as you described. If it's you money working, then no. If it's the dealer's money working, than yes. The only thing you should really have to pay, is the transfer fee. Now, don't let your FFl dealer on your end, tell you different. That is exactly what a dealer pulled on a buddy of mine and sure enough, my buddy paid it. ...
You know, you may want to make sure your dealer understands that he has not sold you anything. ....

I'll tell you different.
Before giving sales tax advice be aware that some states DO collect sales tax on ALL interstate firearm transfers.

California and Washington are two of them.

 

[Pahoo]

We shall see !!!

Before giving sales tax advice be aware that some states

Yes, I guess I was giving advice but mostly relating my experience. Going to be interesting to see how the OP makes out. .....

California and Washington are two of them.

So you would say that for "most" states, it was good advice.
WOW!! I might run for Congress. ...

Be Safe !!!

 

[Don H]

Don't forget that failure to declare purchases made over the internet, mail order or over the phone and paying the use tax by April 15 is a crime in Colorado.

 

[Aguila Blanca]

I suppose the law on sales tax varies by state as much as other types of laws vary, but here goes:

In my state, technically the buyer is responsible for paying sales tax on anything he/she purchases and brings into the state. For convenience, the system has been set up to have merchants collect the sales tax on sales consummated in brick-and-mortar stores within the state, and the merchants forward the payments to the state. Within the past year or two some of the large Internet sellers (even some who do not have any outlets in state) have begun collecting sales tax for anything shipped to an address in this state.

I have done a couple of firearms purchases from out of state. I sent payment to the seller, and all I paid to the FFL here in state was the transfer fee. Legally, I was supposed to have paid the sales tax to the state. I suppose if they find out I will face some kind of penalty, but I don't know it failure to pay it is actually a criminal act. On the other hand, since the sellers didn't (and don't) have a physical presence in this state, I'm not sure the law actually requires me to have paid sales tax on what was an inter-state transaction.

 

[redmond]

California and Washington are two of them.

You are correct. WA collects a 'use tax' on all firearm transfers that just happens to be the same as the local sales tax rate. Note that the tax includes the shipping fee and insurance. FFLs here are being watched carefully to make sure they collect it.

From WA Dept of Revenue:

Tax on the interstate transfer of a firearm
A Washington gun dealer is required to collect use tax from a Washington buyer at the time the firearm is delivered to the buyer. Use tax is collected on the total purchase price, including freight/delivery and insurance charges.